Nebraska Lawmakers Advance Child Care Subsidy Bill to Support Working Families

The bill would permanently keep income eligibility levels for Nebraska's child care subsidy program at higher caps set during the pandemic, drawing debate over government's role in supporting child care costs.

Mar. 31, 2026 at 4:08am

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A dynamic, abstract painting of a parent rushing to a daycare center, with overlapping geometric shapes and vibrant colors conveying the frantic pace of modern life and the challenges of balancing work and family.The high cost of child care forces many Nebraska parents to make difficult choices about work and family, underscoring the need for policy solutions to support the state's workforce.Lincoln Today

Nebraska lawmakers advanced a child care subsidy bill on a 39-8 vote that would permanently keep income eligibility levels for the state's child care subsidy program at higher caps set in 2021 during pandemic recovery efforts. Supporters say the bill is key infrastructure for the state's economy, while some legislators argued that businesses, not government, should bear the brunt of child care costs.

Why it matters

The average cost of child care in Nebraska is $13,000 per year, more than a state lawmaker's annual salary. Supporters argue the subsidy is necessary to keep working parents in the workforce, while opponents say the government should not be responsible for private child care expenses.

The details

Legislative Bill 304 would permanently keep income eligibility levels for Nebraska's child care subsidy program at 185% of the federal poverty level, rather than lowering back to 130% as they were prior to 2021. This would extend eligibility for a family of four to about $59,000 in annual household income, compared to the previous ceiling of about $42,000. The bill would cost an additional $3.16 million next year, to be funded from the state's Health Care Cash Fund.

  • On March 30, 2026, the Nebraska Legislature advanced LB 304 to the second round of debate on a 39-8 vote.
  • The current higher income eligibility levels are set to expire in October 2026.

The players

Wendy DeBoer

A state senator from Omaha who made LB 304 her priority for the legislative session, calling the child care subsidy necessary infrastructure for the state's economy.

Kathleen Kauth

A state senator who argued that COVID-19 has ended and the expanded eligibility levels should also end, saying the money comes from constituents and this is the government taking money from taxpayers to give to others for child care.

Greater Omaha Chamber of Commerce

Released a regional study intended to underscore the importance of child care access to economic growth, finding that inadequate child care services could translate into 3,909 fewer filled jobs and $1.02 billion in lost business input in the Omaha metro area alone.

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What they’re saying

“If we're ever able to successfully incentivize businesses to come to our state, we need a basic investment in childcare infrastructure. That is what LB 304 is.”

— Wendy DeBoer, State Senator

“This money comes from our constituents. This is no different than us saying to the taxpayers, 'Hey, listen, we want to take money from you, so we can give it to someone else so that they can have their child in childcare.'”

— Kathleen Kauth, State Senator

“Are we really about making sure those who want to work can work?”

— Brad von Gillern, State Senator

What’s next

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The takeaway

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